Aussie businesses risk falling behind in AI race 

• Businesses have embraced AI, struggle to convert adoption into business value
• CPA Australia appears at Parliamentary Joint Committee on AI adoption in Australia
• 88 per cent of Australian businesses use AI but only 10 per cent have deeply embedded it across their organisation
• Nearly three in 10 organisations provide little or no governance on AI use

Australian businesses have embraced AI, but a new survey from CPA Australia suggests many are struggling to convert widespread adoption into a competitive advantage, leaving Australia lagging many regional peers in AI integration.

CPA Australia's 2026 Business Technology Report found 88 per cent of Australian businesses now use AI, but only 10 per cent have deeply embedded it across their operations.

The annual survey of 1,679 accounting and finance professionals across Australia, Hong Kong, Malaysia, Chinese Mainland and Singapore found that Australian businesses also recorded the lowest level of broad AI integration among all the surveyed markets.

CPA Australia Business and Investment Lead Gavan Ord said the findings highlight a growing gap between businesses using AI occasionally and those embedding it strategically across their operations.

“Australian businesses have largely adopted AI, but many are still only scratching the surface of its potential,” Mr Ord said.

Mr Ord will today take CPA Australia's findings to the Parliamentary Joint Committee on AI adoption in Australia, warning that Australia risks falling behind regional competitors unless businesses are supported to integrate AI more deeply into their operations.

“Successful businesses across the region are increasingly integrating AI into core operations, while many Australian organisations remain in the early stages of that journey.

“The businesses seeing the greatest benefits are integrating AI into workflows, decision-making and core business processes rather than limiting its use to standalone tasks such as drafting emails. 

“If Australia is serious about lifting productivity and improving economic growth, businesses must move beyond AI experimentation and focus on embedding it more deeply into their operations.”

The report also found Australian businesses lag their regional counterparts in adopting more sophisticated AI technologies. 

Just 28 per cent of Australian businesses reported using agentic AI systems capable of completing multi-step tasks with minimal human prompting, compared with 58 per cent in the Chinese Mainland, 49 per cent in Hong Kong and 47 per cent in Singapore. Only 36 per cent of Australian businesses use custom-built AI tools, compared with 61 per cent in the Chinese Mainland.

The findings indicate businesses with deeper AI integration are more likely to report stronger profitability outcomes. Across all markets surveyed, 63 per cent of businesses reporting increased profitability said AI was widely used across several business functions or deeply embedded throughout the organisation, compared with 50 per cent of businesses whose profitability remained unchanged or declined.

“The message from the data is clear: AI adoption alone isn't enough. The real benefits come when AI becomes embedded in day-to-day operations, helping businesses improve productivity, efficiency and decision-making,” Mr Ord said.

“AI has the potential to make a meaningful contribution to Australia's productivity challenge, but only if businesses invest in the capability, governance and processes needed to use it effectively.” 

While businesses are increasingly reporting productivity gains and efficiency improvements from AI, concerns around privacy, security, over reliance on AI and reduced human oversight remain significant barriers to deeper adoption.

The report also identified a governance gap, with almost three in 10 organisations providing little or no guidance or oversight of AI use.

“Many organisations have adopted AI faster than they have developed the governance frameworks needed to manage it effectively. Strong governance is essential to managing risk, building trust and ensuring businesses realise the long-term value of their AI investments,” Mr Ord added.

As businesses become increasingly reliant on AI and data, cybersecurity remains critical to maintaining trust, protecting information and supporting business continuity. Australian respondents were the most likely of all surveyed markets to expect increased use of cybersecurity software over the next 12 months.

Looking ahead, Australian businesses expect increased use of data analytics, AI-enabled workplace software and cybersecurity capabilities as they seek to move from AI experimentation to integration.

“Technology should be helping to lift productivity, but many Australian businesses are still struggling to realise its full benefits,” said Mr Ord.

“Governments should therefore prioritise measures that support AI integration, build workforce capability and help businesses translate technology investment into productivity gains.

“The next phase of AI will not be defined by how many businesses use it. It will be defined by how effectively and deeply businesses integrate it into the way they operate, make decisions and create value.”

To help Australian businesses move from AI adoption to AI integration, CPA Australia recommends governments significantly expand the size and scope of their current digital support programs and workforce capability initiatives. 

Key findings

• 88 per cent of Australian businesses use AI
• Only 10 per cent have deeply embedded AI across their organisation
• Australia recorded the lowest level of broad AI integration among the surveyed markets
• Only 28 per cent of Australian businesses use agentic AI, compared with 58 per cent in the Chinese Mainland
• Just 36 per cent use custom-built AI tools, compared with 61 per cent in Chinese Mainland
• Businesses with broader AI integration were more likely to report increased profitability
• Nearly three in 10 organisations provide little oversight of AI use or no guidance

About the research 

CPA Australia surveyed 1,679 accounting and finance professionals between July and August 2026 across Australia, Chinese Mainland, Hong Kong, Malaysia and Singapore. Respondents represented organisations of varying sizes and industries.